KPS Capital Partners, a special situations private equity firm, has completed the final closing on USD800m of additional capital for KPS Special Situations Fund III, bringing total comm
KPS Capital Partners, a special situations private equity firm, has completed the final closing on USD800m of additional capital for KPS Special Situations Fund III, bringing total commitments to USD2.0bn.
The additional capital will be deployed for future investments in turnarounds, restructurings, bankruptcies and other special situations and was raised to capitalize on the unprecedented number of opportunities in the market.
KPS Fund III originally closed in May 2007 with USD1.2bn of committed capital and launched its investment campaign in November 2007. Since that time the fund has made three platform investments, all of which are exceeding KPS’s expectations.
The additional capital was committed primarily by current KPS Fund III limited partners and select new investors. After notifying investors in June 2009 of its desire to upsize KPS Fund III by USD800m, KPS received subscription requests of more than USD1.3bn, more than 50 per cent above the USD800m target. The upsizing is the fourth oversubscribed institutional fundraise by KPS over the past 11 years.
Michael Psaros and David Shapiro, co-founders and managing partners of KPS, said: "We are humbled by the decisive response to KPS Fund III’s upsizing, given the historic dislocation in the global capital markets and especially for alternative investment fundraising. The successful upsizing reflects our track record, the strength of our investment strategy, our differentiated deal flow and the long-term continuity and depth of our senior investment team. We are very grateful to our limited partners for their continued confidence and support of KPS and for providing the additional resources necessary to fully capitalize on the opportunities in the market."
Investors in KPS Fund III include public and private sector pension funds, best-in-class fund of funds, major financial institutions, endowments and foundations, and family offices from North America, Europe, Japan and Australia.
Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel in the formation of KPS Fund III and the upsizing.
